126 REPORT OF THE SCOTTISH COMMISSION 



by instalments, but he has also the option of repaying sooner, 

 if the market is favourable, by the purchasing of securities of the 

 Company. 



The ordinary banks, as well as the Savings Banks also, lend 

 money on the security of the land and stocking at varying rates 

 of interest, and at varying terms in regard to repayment of the 

 principal. 



In 1899 the State came forward to assist in the formation of 

 smaller holdings, and by an Act passed in that year, extending for 

 five years, and since renewed, they undertook to provide an annual 

 sum for loans on small holdings. The loans are administered by 

 a committee for each district, consisting of three members, one 

 appointed by the Minister of Agriculture, and another being 

 a "husmand," i.e. a cottager or small holder. The purpose is to 

 provide land for rural labourers between twenty-five and fifty years 

 of age, who must have had five years' experience of agriculture, 

 and possess testimonials from two reliable persons that they are 

 diligent, sober, and suitable. The holding varies in size according 

 to the quality of the land, but must be not less than 2| acres nor 

 more than 10| acres of average land or 16 acres of poor land. 

 The Government lend upon the security of this to the extent of 

 nine-tenths at 3 per cent. During the first five years no capital 

 need be repaid. After that two-fifths of the loan must be repaid 

 in yearly instalments of 4 per cent., and thereafter the remainder in 

 yearly instalments of 4 per cent. The holding must be cultivated, 

 and the buildings and stocking maintained, to the satisfaction of 

 the local Committee. 



The Government also assist small farmers by providing for the 

 formation in villages or districts of a Society, who may borrow 

 from the Government to an extent not exceeding £383. This 

 money is lent out again to the members of the Society in sums of 

 not more than £2, 15s. each at a moderate rate of interest, and is 

 repayable at the end of nine months. At the expiry of that time 

 the borrower may reborrow. The money thus got is used for 

 reproductive purposes. 



In these several ways ample provision is made for the lending 

 of money on land and stocking combined. It would seem, how- 

 ever, that excepting when the Government itself provides the 

 money, it is not got on any easier terms than it would be in our 

 own country, but there is this very important difference in the 

 landowner's favour, that he is able to borrow on the security of 

 the stock upon the holding as well as on the security of the 

 land itself. 



In any of the cases which came under the Commission's notice, 

 the conditions regarding repayment of loans did not seem to press 

 heavily on the debtors. 



